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Optimum output discussion

Honda uses flexible plans in the manufacturing of its cars. Discuss whether this method of production results in optimum output. You can access and cite some info from here: The Wall Street Journal, September 23, 2008, p. B1.

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Let's keep this simple:

The concept is that the production system can rationally respond to changes.

Here's the WSJ article that I used:
http://online.wsj.com/article/SB122211673953564349.html

In the Honda case, the issue is that the plant can shift from one model to another without losing much time (and money). The idea is to shift over without having to retool very much. What is happening is that (especially in computer controlled methods) different programs can be uploaded, depending on how demand is being interpreted. This permits Honda (and others) to constantly change their production methods rapidly in response to changes in demand, fuel prices, or the economy in general. This is both Machine Flexibility and Production Flexibility.

In addition, these plants can change over to different models ...

Solution Summary

The solution discusses the optimum output.

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